Will this affect Graceland?

[utmom2008]

American Idol’s Sillerman Owes $21.4 Million on Loan, Bank Says
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By Patricia Hurtado

May 23 (Bloomberg) -- Robert F.X. Sillerman, chief executive officer of CKX Inc. and owner of the “American Idol” brand, owes a $21.4 million on a loan, Credit Suisse Group AG said in a court filing in New York.

Credit Suisse’s Cayman Island’s branch filed the request for summary judgment in lieu of a complaint in New York State Supreme Court in Manhattan. Credit Suisse was acting as the agent on behalf of the holders of the loan.

The bank, Switzerland’s second-largest, alleges that Sillerman has failed to pay the outstanding balance of due under a credit agreement with Flag Luxury Properties LLC, in Anguilla, British West Indies, and that Sillerman has defaulted on a series of payments due since April 2008.

“Defendant is obligated to pay $21,400,000 to Credit Suisse,” the bank said in court papers filed May 21, adding later, “the demand on the defendant was refused.”

Subsequent payments that became due also remain unpaid, the bank said in court papers. Sillerman also has failed to make the required principal payments due since June 2008, the bank alleged. The outstanding principal due under the first-lien credit agreement is $137.2 million, Credit Suisse said in court papers.

‘Entertainment-Themed’ Projects

Flag Luxury is described in company releases as an “affiliate” of FX Real Estate and Entertainment Inc., a company chaired by Sillerman and formed in 2007, “to engage in the development and ownership of entertainment-themed real estate projects.”

Flag announced a deal to operate what it described as an “exclusive ultra-luxury hotel and residences” in 2008 on the island of Anguilla, British West Indies. The property was named the Baccarat Hotel and Residences at Temenos, Anguilla.

CKX, based in New York, also owns the rights to the names and images of Muhammad Ali and Elvis Presley, as well as Presley’s Graceland mansion.

Ed Tagliaferri, an outside spokesman for Sillerman, didn’t return a voicemail message left at his office seeking comment yesterday.

Duncan King, a Credit Suisse spokesman, declined to comment on the bank’s legal action. Rick Matthews, a spokesman for Flag, didn’t return a voicemail message seeking comment after regular business hours yesterday.

The case is Credit Suisse, Cayman Islands Branch v. Robert F.X. Sillerman, 601595/2009, New York State Supreme Court (Manhattan).

[Diane]

That doesn't sound good....hope it doesn't affect Graceland.

Diane

[TotallyInsane]

If he defaults on his lease payments of Graceland then I would think the lease agreement is null and void and it's all Lisa's again, right?

[epmoodyblue]

lets wait and see what happens...but i sure hope it dosent affect gracelandi never liked Sillerman-hold still U silly maN now turn arounD sillerman ..pick up your forks peeps

[Tommy]

Graceland will not be affected by this since Lisa owns Graceland.

[Stryx]

Lisa Marie owns Graceland.

Check back on previous topics on what exactly Sillerman acquired when he did the deal.

Lisa owns Graceland.

[utmom2008]

lets wait and see what happens...but i sure hope it dosent affect gracelandi never liked Sillerman-hold still U silly maN now turn arounD sillerman ..pick up your forks peeps

Your emoticons NEVER fail to make me laugh!

[epmoodyblue]

Your emoticons NEVER fail to make me laugh!

thank u roseanne

[KPM]

SIllermans wealth was on "paper".... ownership in many things and since stocks crashed so badly with only a slight upturn he does not have the collateral on paper that he had a couple years ago. I think he may have over reached in his plans and it caught up with him.

[Awickedreigndrop]

He only have right to Elvis' name and image right? He might have to hand them back over before they get sucked up in his mess.

[Jungleroom76]

Hmmm...can't say this sounds very good for Sillerman...

I don't think it will affect Graceland per se, but I do have to imagine that this probably will delay, if not stop altogether, Sillerman's plans for the re-vitalization of the area around Graceland.

As much as I don't care for the guy, I was on-board with his plans to re-establish the Graceland area as THE premiere destination for all Elvis fans and to bring the safety and respect back to the area that it so desperately needs these days.

Unfortunately, I would have to imagine that this latest "development" would be a major setback for any plans Sillerman may have had for the Graceland complex...

TCB!
Mike

[utmom2008]

I don't think it will affect Graceland per se, but I do have to imagine that this probably will delay, if not stop altogether, Sillerman's plans for the re-vitalization of the area around Graceland.

TCB!
Mike

I have never understood exactly what it was he thought he could do for the area around Graceland. I understand the high-rise hotels and places such as that, but how do you change the demographics of a city? Memphis is just like any other city in that aspect....certain "incomes" live in certain areas, and the upper class is no where close to Graceland and EP Blvd.

[Dudcowboy_1]

Lisa didn't sell Graceland, etc to him all he owns is the MUSIC, TV, IMAGE rights all that stuff in the house, horses, planes Lisa all owns still.

[Brian]

I have never understood exactly what it was he thought he could do for the area around Graceland. I understand the high-rise hotels and places such as that, but how do you change the demographics of a city? Memphis is just like any other city in that aspect....certain "incomes" live in certain areas, and the upper class is no where close to Graceland and EP Blvd.

I think he wanted to buy up all the acres of surronding land around Graceland to build and open up more gift shops.

The gift shops would be there to try to get tourists to spend more money

[Broussey]

I wounder what Lisa-Maire and Priscilla think of there decision NOW!! Be neat to get a statement from them...... They should have left it alone what a big

[Brian]

I wounder what Lisa-Maire and Priscilla think of there decision NOW!! Be neat to get a statement from them...... They should have left it alone what a big

Lisa did it for the money and is probably very happy she did it

[Wendy56]

I still don't undestand.

[TotallyInsane]

I realize Lisa owns Graceland. What I was saying was if he can't pay the lease agreement then the lease will be null and void and she will get 100% of what Graceland brings in now instead of the 15% she's been getting since Sillyman came in the picture.

[MissyM]

Sillerman leases the property. (from Lisa-to carry on his business) But he owns the image and likeness. If he goes in debt then he might have to sell off portions of his holdings to pay those debts. But since the image and likeness are just one of his holdings, he may sell off other things instead.
One of the problems that comes from this (and our economy in the tank) is the stock in his company (CKX)has dropped considerably.
Lisa recently sold off most of hers. Strange coincidence??? She attained I don't know how much of the stock in the sell off deal.
If Graceland tours aren't making a large enough profit margin, then he might have to sell that part of his business off.
What happens to a business if you are in debt, the banks can end up owning it. But no, they can't touch Graceland itself, just the business that is carried out there.

[Diane]

You mean we won't be able to get anymore rubber duckies?

Diane